SEOUL, South Korea — On Monday, a South Korean appellate court upheld a previous decision that cleared Samsung Electronics Chairman Lee Jae-yong of financial misconduct linked to a controversial merger involving Samsung affiliates. This merger was crucial in solidifying Lee’s dominance over South Korea’s largest corporation, Samsung Electronics.

The Seoul High Court dismissed an appeal submitted by prosecutors. Lee’s attorney, You Jin Kim, expressed satisfaction with the ruling, suggesting that this outcome would allow Lee to focus on his responsibilities within the company following the court’s decision. Prosecutors, however, still have the option to bring the case before the Supreme Court, which has the final authority in such legal matters.

In February 2024, the Seoul Central District Court concluded that the prosecution could not adequately demonstrate that the merger between Samsung C&T and Cheil Industries was conducted unlawfully to enhance Lee’s influence within Samsung Electronics.

Lee Jae-yong, a third-generation leader of the Samsung conglomerate, was officially named chairman of Samsung Electronics in October 2022. He has been at the forefront of the company since 2014, after his father’s health dramatically declined due to a heart attack.

Previously, Lee had spent 18 months incarcerated after a conviction in 2017 on separate bribery charges tied to the 2015 merger. Initially, he received a five-year prison sentence for allegedly bribing former President Park Geun-hye and one of her close aides in an effort to secure government backing for the merger, an important step for reinforcing his leadership transition within the broader Samsung organization.

He was released on parole in 2021 and subsequently granted a pardon by South Korean President Yoon Suk Yeol in August 2022. It’s worth noting that some shareholders had raised concerns regarding the 2015 merger, arguing that it disproportionately favored the Lee family and adversely impacted minority stockholders.